In this FDD Talk post, you’ll learn the following:
- Section I – Estimated initial investment (franchise costs) for a Miracle Method franchise, based on Item 7 of the company’s 2022 FDD
- Section II – Initial franchise fee, royalty fee, and marketing fee for a Miracle Method franchise, based on Items 5 and 6 of the company’s 2022 FDD
- Section III – Number of franchised and company-owned Miracle Method outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD
- Section IV – Background information on the Miracle Method franchise opportunity, including relevant news updates
- Section V – Presentation and analysis of Miracle Method’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:
- 2021 actual and average total revenue, reported number of technicians, total revenue per technician per month, and number of franchised outlets for the 72 Miracle Method franchised locations that were in operation for 12 months or longer as of December 31, 2021
- 2021 actual and average total revenue, reported number of technicians, total revenue per technician per month, and number of affiliated outlets for the 4 Miracle Method affiliated locations that were in operation for 12 months or longer as of December 31, 2021
- Section VI – Key ratios, comparables, computations, and analyses for the Miracle Method franchise opportunity (exclusive content for Platinum subscribers)
Section I – Miracle Method Franchise Costs
- Miracle Method franchise costs, based on Item 7 of the company’s 2022 FDD:
- Initial Franchise Fee: $45,000 to $58,000
- Territory Option Fee: $0 to $35,000
- 3 Months’ Lease Payments: $6,000 to $7,500
- Computer Hardware and Software: $2,000 to $3,000
- Vehicle: $2,400 to $7,200
- Equipment and Materials: $6,000 to $18,000
- Office Equipment and Supplies: $1,500 to $3,500
- Business Licenses and Permits: $2,500
- Professional Fees: $1,500 to $2,000
- Brand Protection Fee: $750
- Insurance – 3 Months: $4,500 to $7,500
- Supplemental Training Fee: $6,000
- Training Expenses: $3,200 to $16,000
- Initial Marketing Program: $10,000 to $15,000
- Additional Funds for 3 Months: $5,050 to $13,850
- Total Estimated Miracle Method Franchise Costs: $96,400 to $195,800
Section II – Miracle Method’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Miracle Method’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:
- Initial Franchise Fee: the greater of $45,000 or $0.15 multiplied by the number of people in your Territory
- Royalty: the greater of 5.5% of Gross Revenues in your Territory or the minimum Royalty based on the size of your Territory
- National Advertising Fund Fee: the greater of 1.5% of Gross Revenues or $150 per month (“Minimum Ad Fee”)
Section III – Number of Franchised and Company-Owned Miracle Method Outlets
Franchised
2019
- Outlets at the Start of the Year: 149
- Outlets at the End of the Year: 157
- Net Change: +8
2020
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- Outlets at the Start of the Year: 157
- Outlets at the End of the Year: 163
- Net Change: +6
2021
- Outlets at the Start of the Year: 163
- Outlets at the End of the Year: 166
- Net Change: +3
Company-Owned
2019
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
2020
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
2021
- Outlets at the Start of the Year: 1
- Outlets at the End of the Year: 1
- Net Change: 0
Section IV – Background Information on the Miracle Method Franchise
8 Things You Need to Know About the Miracle Method Surface Refinishing Franchise
Opens First International Location in Canada
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1. In early March 2021, Miracle Method Surface Refinishing opened its first international location in London, Ontario, Canada. Chuck Pistor, president of Miracle Method, awarded the franchise to Rick Frank, a former vice president of operations with G.N. Johnston Equipment and native of London, Ontario.
2. Pistor said, “Rick has a wealth of management experience, the proper resources and an operations background that make him the ideal owner to introduce Miracle Method’s proprietary surface refinishing process to Canada.”
Benefits of Owning a Miracle Method Franchise
3. Miracle Method Surface Refinishing said there are many benefits of owning a Miracle Method franchise, including:
- Proven performance – Miracle Method provides opportunity to make money. The company’s network-wide average sales in 2020 was $895,000 and its highest sales by a single franchise was $2.6 million. Many of the top franchises gross over $1,000,000 in sales each year.
- Mobile business – going to customers provides for a faster start up.
- Low initial investment – can result in a quicker return on investment.
- Scalable management model – adding people can help a franchisee grow faster and help them achieve their goals.
- Unique concept and proprietary products – provide competitive advantage to capture market share.
- Family-friendly work schedule – Miracle Method’s business model lets franchisees determine their work/life balance.
- Comprehensive training – Miracle Method provides extensive training so franchisees know what to do and what not to do.
- Extensive support – to give franchisees the knowledge and confidence to be successful.
- Advanced marketing support – to make franchisee’s phone ring and establish a solid digital presence.
- Broad customer demand – from both residential and commercial properties helps keep the schedule full.
- 40-year proven track record – provides assurance that franchisees are with the industry leader.
Offers a Unique Service
4. Miracle Method Surface Refinishing specializes in fixing customers’ surface problems in their baths and kitchens. Instead of ripping out and replacing damaged bathtubs, outdated tile, and ugly countertops, Miracle Method offers a beautiful alternative. The finish is seamless and non-porous.
5. Miracle Method’s finish has unique properties, including:
- The life of a fixture is extended for up to 10-15 years, effectively “recycling in place”;
- Chips, cracks, and other damage are repaired;
- The surface becomes much easier to clean and keep sanitary;
- Tile grout lines are permanently sealed;
- Savings can be up to 70% versus the cost of replacement;
- Colors are changed – ugly surfaces become beautiful again;
- Antimicrobial technology can inhibit germs and bacteria.
Company History
6. Miracle Method Surface Refinishing was founded in 1979 in San Francisco, California. The brand specializes in repairing and restoring all types of tubs, ceramic tile, and countertops. Miracle Method was founded after the development of a unique, proprietary bonding agent that eliminated the use of hydrofluoric acid, which had been required up to that point to etch porcelain or ceramic tile in order for a new finish to stick in the refinishing process. Known as MM-4, this new bonding agent increased adhesion so significantly that it was immediately declared a “miracle” – this is where the company gets its name.
7. The founder of Miracle Method decided to grow the business through franchising, which began not long after the company was started. Today, there are Miracle Method Surface Refinishing locations across the United States and Canada. The company is now based out of Colorado Springs, Colorado.
Entrepreneur’s Franchise 500
8. Miracle Method Surface Refinishing ranked No. 147 on Entrepreneur’s 2022 Franchise 500 list.
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Miracle Method Franchise (Item 19, 2022 FDD)
- As of December 31, 2021, there was one affiliate-owned Miracle Method Business (“Company-Owned Location”), nine Miracle Method Businesses operated by franchisees that are partially owned by Miracle Method’s president (the “Affiliated Outlets”), and 157 franchised Miracle Method Businesses (“Franchised Outlets”).
- Miracle Method refers to each franchisee operating one or more Franchised Outlets as a “Franchised Location” and each affiliated franchisee operating one or more Affiliated Outlets as an “Affiliated Location.”
- Miracle Method does not include data from its Company-Owned Location.
- The financial information provided in the following tables represents the historical performance of certain Franchised Locations and Affiliated Locations in the reporting groups specified during the 2021 fiscal year (January 1, 2021 to December 31, 2021) (“Reporting Period”).
- The Affiliated Locations share many of the same characteristics as Miracle Method’s Franchised Locations, including degree of competition, length of time in operation, and services and goods offered. The Affiliated Locations have a signed franchise agreement and are bound by the same standards and requirements as Franchised Locations, including the payment of Royalties and National Advertising Fund Fees.
Part 1 – Total Revenue and Revenue Per Technician for the Franchised Locations in T1 Reporting Group During the Reporting Period
- Parts 1 and 2 present financial performance for: (1) the 72 Franchised Locations that were in operation for 12 months or longer as of December 31, 2021; and (2) the four Affiliated Locations that were in operation for 12 months or longer as of December 31, 2021 (“T1 Reporting Group”) during the Reporting Period. The T1 Reporting Group operates a total of 154 Franchised Outlets and eight Affiliated Outlets.
- Miracle Method has excluded the data of three Franchised Locations and one Affiliated Location that were not open and operating for all 12 months of the Reporting Period.
- Miracle Method includes data from nine additional Franchised Outlets added to existing Franchised Locations that opened during the Reporting Period so long as the Franchised Location adding the additional Franchised Outlet was open for all 12 months of the Reporting Period. Miracle Method includes this data because the Franchised Locations report the Gross Revenue for these Franchised Outlets together.
- The data in this Item 19 was reported to Miracle Method by each Franchised Location and Affiliated Location in the T1 Reporting Group. These numbers have not been audited, but Miracle Method has no reason to doubt their accuracy.
Location #114
- Total Revenue: $3,291,132
- Reported Number of Technicians: 15
- Total Revenue Per Technician Per Month: $18,187
- Number of Franchised Outlets: 3
Location #174
- Total Revenue: $3,281,767
- Reported Number of Technicians: 10
- Total Revenue Per Technician Per Month: $28,547
- Number of Franchised Outlets: 6
Location #137
- Total Revenue: $3,030,797
- Reported Number of Technicians: 12
- Total Revenue Per Technician Per Month: $21,350
- Number of Franchised Outlets: 7
Location #175
- Total Revenue: $2,870,995
- Reported Number of Technicians: 13
- Total Revenue Per Technician Per Month: $18,648
- Number of Franchised Outlets: 8
Location #213
- Total Revenue: $2,563,676
- Reported Number of Technicians: 10
- Total Revenue Per Technician Per Month: $22,301
- Number of Franchised Outlets: 7
Location #110
- Total Revenue: $2,406,730
- Reported Number of Technicians: 9
- Total Revenue Per Technician Per Month: $21,496
- Number of Franchised Outlets: 5
Location #207
- Total Revenue: $2,404,427
- Reported Number of Technicians: 7
- Total Revenue Per Technician Per Month: $28,624
- Number of Franchised Outlets: 1
Location #135
- Total Revenue: $2,403,674
- Reported Number of Technicians: 9
- Total Revenue Per Technician Per Month: $23,103
- Number of Franchised Outlets: 4
Location #113
- Total Revenue: $1,925,766
- Reported Number of Technicians: 5
- Total Revenue Per Technician Per Month: $31,591
- Number of Franchised Outlets: 2
Location #116
- Total Revenue: $1,861,118
- Reported Number of Technicians: 8
- Total Revenue Per Technician Per Month: $19,909
- Number of Franchised Outlets: 3
Location #165
- Total Revenue: $1,825,669
- Reported Number of Technicians: 7
- Total Revenue Per Technician Per Month: $21,489
- Number of Franchised Outlets: 2
Location #202
- Total Revenue: $1,727,693
- Reported Number of Technicians: 6
- Total Revenue Per Technician Per Month: $23,335
- Number of Franchised Outlets: 3
Location #112
- Total Revenue: $1,707,076
- Reported Number of Technicians: 5
- Total Revenue Per Technician Per Month: $28,003
- Number of Franchised Outlets: 2
Location #229
- Total Revenue: $1,686,244
- Reported Number of Technicians: 8
- Total Revenue Per Technician Per Month: $17,653
- Number of Franchised Outlets: 4
Location #172
- Total Revenue: $1,619,604
- Reported Number of Technicians: 8
- Total Revenue Per Technician Per Month: $16,029
- Number of Franchised Outlets: 2
Location #216
- Total Revenue: $1,537,623
- Reported Number of Technicians: 7
- Total Revenue Per Technician Per Month: $19,713
- Number of Franchised Outlets: 3
Location #206
- Total Revenue: $1,493,602
- Reported Number of Technicians: 7
- Total Revenue Per Technician Per Month: $17,781
- Number of Franchised Outlets: 2
Location #119
- Total Revenue: $1,416,835
- Reported Number of Technicians: 6
- Total Revenue Per Technician Per Month: $19,136
- Number of Franchised Outlets: 3
Location #178
- Total Revenue: $1,376,488
- Reported Number of Technicians: 6
- Total Revenue Per Technician Per Month: $17,867
- Number of Franchised Outlets: 3
Location #117
- Total Revenue: $1,300,885
- Reported Number of Technicians: 6
- Total Revenue Per Technician Per Month: $17,126
- Number of Franchised Outlets: 1
Location #161
- Total Revenue: $1,288,390
- Reported Number of Technicians: 5
- Total Revenue Per Technician Per Month: $22,001
- Number of Franchised Outlets: 1
Location #164
- Total Revenue: $1,235,588
- Reported Number of Technicians: 5
- Total Revenue Per Technician Per Month: $20,071
- Number of Franchised Outlets: 3
Location #153
- Total Revenue: $1,235,342
- Reported Number of Technicians: 5
- Total Revenue Per Technician Per Month: $20,265
- Number of Franchised Outlets: 4
Location #125
- Total Revenue: $1,207,397
- Reported Number of Technicians: 6
- Total Revenue Per Technician Per Month: $16,549
- Number of Franchised Outlets: 1
Location #246
- Total Revenue: $1,165,571
- Reported Number of Technicians: 5
- Total Revenue Per Technician Per Month: $18,643
- Number of Franchised Outlets: 3
Location #177
- Total Revenue: $1,154,396
- Reported Number of Technicians: 5
- Total Revenue Per Technician Per Month: $18,049
- Number of Franchised Outlets: 3
Location #233
- Total Revenue: $1,062,771
- Reported Number of Technicians: 4
- Total Revenue Per Technician Per Month: $20,037
- Number of Franchised Outlets: 3
Location #108
- Total Revenue: $1,044,446
- Reported Number of Technicians: 5
- Total Revenue Per Technician Per Month: $19,214
- Number of Franchised Outlets: 3
Location #217
- Total Revenue: $1,013,468
- Reported Number of Technicians: 4
- Total Revenue Per Technician Per Month: $23,591
- Number of Franchised Outlets: 2
Location #218
- Total Revenue: $1,009,898
- Reported Number of Technicians: 5
- Total Revenue Per Technician Per Month: $17,868
- Number of Franchised Outlets: 2
Location #105
- Total Revenue: $1,009,876
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $34,775
- Number of Franchised Outlets: 1
Location #100
- Total Revenue: $1,007,073
- Reported Number of Technicians: 6
- Total Revenue Per Technician Per Month: $14,395
- Number of Franchised Outlets: 3
Location #149
- Total Revenue: $972,673
- Reported Number of Technicians: 5
- Total Revenue Per Technician Per Month: $15,956
- Number of Franchised Outlets: 2
Location #140
- Total Revenue: $928,259
- Reported Number of Technicians: 5
- Total Revenue Per Technician Per Month: $16,564
- Number of Franchised Outlets: 2
Location #109
- Total Revenue: $911,639
- Reported Number of Technicians: 4
- Total Revenue Per Technician Per Month: $19,184
- Number of Franchised Outlets: 1
Location #170
- Total Revenue: $885,309
- Reported Number of Technicians: 4
- Total Revenue Per Technician Per Month: $16,844
- Number of Franchised Outlets: 2
Location #189
- Total Revenue: $876,838
- Reported Number of Technicians: 6
- Total Revenue Per Technician Per Month: $13,285
- Number of Franchised Outlets: 1
Location #190
- Total Revenue: $874,053
- Reported Number of Technicians: 5
- Total Revenue Per Technician Per Month: $13,980
- Number of Franchised Outlets: 3
Location #209
- Total Revenue: $844,761
- Reported Number of Technicians: 3
- Total Revenue Per Technician Per Month: $22,491
- Number of Franchised Outlets: 2
Location #159
- Total Revenue: $801,841
- Reported Number of Technicians: 4
- Total Revenue Per Technician Per Month: $19,091
- Number of Franchised Outlets: 1
Location #234
- Total Revenue: $741,810
- Reported Number of Technicians: 3
- Total Revenue Per Technician Per Month: $21,170
- Number of Franchised Outlets: 1
Location #171
- Total Revenue: $702,027
- Reported Number of Technicians: 4
- Total Revenue Per Technician Per Month: $13,511
- Number of Franchised Outlets: 1
Location #196
- Total Revenue: $694,025
- Reported Number of Technicians: 4
- Total Revenue Per Technician Per Month: $16,524
- Number of Franchised Outlets: 2
Location #223
- Total Revenue: $676,236
- Reported Number of Technicians: 4
- Total Revenue Per Technician Per Month: $14,231
- Number of Franchised Outlets: 1
Location #240
- Total Revenue: $656,398
- Reported Number of Technicians: 4
- Total Revenue Per Technician Per Month: $12,633
- Number of Franchised Outlets: 2
Location #134
- Total Revenue: $645,430
- Reported Number of Technicians: 3
- Total Revenue Per Technician Per Month: $21,514
- Number of Franchised Outlets: 2
Location #197
- Total Revenue: $641,970
- Reported Number of Technicians: 4
- Total Revenue Per Technician Per Month: $12,829
- Number of Franchised Outlets: 2
Location #103
- Total Revenue: $604,038
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $27,506
- Number of Franchised Outlets: 1
Location #226
- Total Revenue: $585,042
- Reported Number of Technicians: 3
- Total Revenue Per Technician Per Month: $16,251
- Number of Franchised Outlets: 1
Location #127
- Total Revenue: $549,854
- Reported Number of Technicians: 3
- Total Revenue Per Technician Per Month: $15,274
- Number of Franchised Outlets: 1
Location #221
- Total Revenue: $547,560
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $20,280
- Number of Franchised Outlets: 2
Location #154
- Total Revenue: $523,812
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $18,038
- Number of Franchised Outlets: 1
Location #241
- Total Revenue: $488,550
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $18,094
- Number of Franchised Outlets: 1
Location #157
- Total Revenue: $425,850
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $17,744
- Number of Franchised Outlets: 2
Location #188
- Total Revenue: $413,396
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $15,311
- Number of Franchised Outlets: 1
Location #200
- Total Revenue: $394,475
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $17,121
- Number of Franchised Outlets: 1
Location #120
- Total Revenue: $370,223
- Reported Number of Technicians: 4
- Total Revenue Per Technician Per Month: $7,870
- Number of Franchised Outlets: 1
Location #130
- Total Revenue: $362,689
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $12,489
- Number of Franchised Outlets: 2
Location #198
- Total Revenue: $361,574
- Reported Number of Technicians: 1
- Total Revenue Per Technician Per Month: $21,219
- Number of Franchised Outlets: 1
Location #204
- Total Revenue: $355,517
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $14,813
- Number of Franchised Outlets: 2
Location #139
- Total Revenue: $352,707
- Reported Number of Technicians: 3
- Total Revenue Per Technician Per Month: $10,846
- Number of Franchised Outlets: 1
Location #199
- Total Revenue: $337,754
- Reported Number of Technicians: 3
- Total Revenue Per Technician Per Month: $8,768
- Number of Franchised Outlets: 1
Location #208
- Total Revenue: $327,768
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $16,757
- Number of Franchised Outlets: 1
Location #101
- Total Revenue: $322,443
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $13,435
- Number of Franchised Outlets: 1
Location #173
- Total Revenue: $320,920
- Reported Number of Technicians: 1
- Total Revenue Per Technician Per Month: $23,255
- Number of Franchised Outlets: 1
Location #194
- Total Revenue: $297,367
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $10,156
- Number of Franchised Outlets: 1
Location #230
- Total Revenue: $287,671
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $9,906
- Number of Franchised Outlets: 1
Location #215
- Total Revenue: $284,160
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $12,333
- Number of Franchised Outlets: 1
Location #106
- Total Revenue: $271,428
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $13,227
- Number of Franchised Outlets: 1
Location #232
- Total Revenue: $238,110
- Reported Number of Technicians: 2
- Total Revenue Per Technician Per Month: $11,882
- Number of Franchised Outlets: 1
Location #238
- Total Revenue: $235,087
- Reported Number of Technicians: 1
- Total Revenue Per Technician Per Month: $16,744
- Number of Franchised Outlets: 1
Location #104
- Total Revenue: $181,407
- Reported Number of Technicians: 1
- Total Revenue Per Technician Per Month: $22,563
- Number of Franchised Outlets: 1
Average (72 Locations)
- Total Revenue: $1,061,926
- Reported Number of Technicians: 4.7
- Total Revenue Per Technician Per Month: $18,320
- Number of Franchised Outlets: 2.1
Part 2 – Total Revenue and Revenue Per Technician for the Affliated Locations in T1 Reporting Group During the Reporting Period
Location #115
- Total Revenue: $3,006,780
- Reported Number of Technicians: 12
- Total Revenue Per Technician Per Month: $21,325
- Number of Affiliated Outlets: 2
Location #235
- Total Revenue: $1,204,908
- Reported Number of Technicians: 5
- Total Revenue Per Technician Per Month: $21,318
- Number of Affiliated Outlets: 2
Location #219
- Total Revenue: $1,095,204
- Reported Number of Technicians: 6
- Total Revenue Per Technician Per Month: $15,655
- Number of Affiliated Outlets: 2
Location #201
- Total Revenue: $1,003,376
- Reported Number of Technicians: 6
- Total Revenue Per Technician Per Month: $14,985
- Number of Affiliated Outlets: 2
Average (4 Locations)
- Total Revenue: $1,577,567
- Reported Number of Technicians: 7.2
- Total Revenue Per Technician Per Month: $18,321
- Number of Affiliated Outlets: 2
- “Total Revenue” means income from all products and services provided. Some revenue may be generated from jobs outside a purchased territory.
- Miracle Method calculated monthly revenue per technician by dividing Total Revenue by 12 months and dividing by the average number of technicians for the Franchised Location or Affiliated Location during the Reporting Period. This data was reported to Miracle Method by each franchisee.
- The Territory populations for the T1 Reporting Group ranged from 232,714 people to 2,434,208* people (*this franchisee has a legacy franchise agreement that granted this large Territory). Miracle Method franchises with larger total populations may experience higher revenues than a franchise with a standard Territory currently offered by the Disclosure Document.
- The Franchised Locations and Affiliated Locations listed in the tables above in many instances operate multiple Franchised Outlets or Affiliated Outlets. Miracle Method allows franchisees with multiple franchised outlets to report a combined Total Revenue figure to it. Miracle Method does not collect or require franchisees to provide it with separate revenue numbers for each franchised outlet they operate.
- Because the Total Revenue figures above include aggregate totals from Franchised Locations and Affiliated Locations with multiple franchised outlets, these figures may include significantly higher revenues than the typical franchisee would generate operating a single franchised outlet. Please review the above table carefully as you compare the number of franchised outlets you will operate to the number of franchised outlets reported, as revenues per franchised outlet are lower than the reported aggregate revenues.
- The financial performance representation figures above do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from Total Revenue figures to obtain your net income or profit.
- Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.
Section VI – Miracle Method Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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